Three Must-Have Investments For Every Portfolio

Money is dynamic. Economics change and values shift over time. Investors need a plan to both aggressively grow their principle as well as a hedge against macro forces that work against their portfolio.

Inflation, increasing the money supply, and other actions that individual investors don’t control still directly impact your purchasing power.

Strategic investing is a combination of three investment vehicles that work in concert to quickly and efficiently reach financial milestones.

Investment 1: Cash Generating Investment

Warren Buffet said, “If you can’t find a way to make money while you sleep, you will work until you die.” This is so true. A cash-generating investment is often a business or system that allows you to earn beyond your personal effort. It’s the critical first level of leverage.

Cash-generating investments multiply your investment over time. They often require work and nurturing to make sure the profits roll in consistently but they are worth it. Examples of investments that generate cash are businesses or income-producing real estate.

Investment 2: Cash Multiplying Investment

The goal is not to get rich quickly, but to get rich smartly. If your principle is stagnant you won’t be able to improve the quality of your life or experiences. Many people spend their working years saving religiously so they can live out their golden years just above the poverty line. This is not smart.

Instead of relying on cash contributions as the primary growth vehicle, they would be better served looking for ways to efficiently scale the principle they have. It’s really hard and time-consuming to save your way to a million. Examples of investments that multiply cash quickly are trading stock options and some leveraged real estate investments.

Investment 3: Cash Preservation Investment

Cash (buying power) is extremely valuable. It is imperative to not lose what you have. The first rule of investing is not to lose money. The second rule is to remember the first rule.

Preservation of capital is buying assets that retain value over time because their value scales in response to the current market. Examples of investments that preserve buying power are precious metals, income-producing real estate, and royalty-generating assets.

These three investments supercharge growth, mitigate risk, and hedge against the unknown.